New Issue: Hines Nurseries $175 million eight-year notes yield 10¼%

By Paul A. Harris

St. Louis, Sept. 22 - Hines Nurseries, Inc. sold $175 million of senior notes due Oct. 1, 2011 (B3/B) at par Monday to yield 10¼%, according to an informed source.

Price talk was for a yield in the 10½% area.

Credit Suisse First Boston was the bookrunner on the Rule 144A offering. Deutsche Bank Securities was co-manager.

The Irvine, Calif. commercial nursery operator will use proceeds to repay its credit facility and redeem its 12¾% senior subordinated notes due 2005.

Issuer:	Hines Nurseries, Inc.
Amount:	$175 million
Maturity:	Oct. 1, 2011
Security description:	Senior notes
Bookrunner:	Credit Suisse First Boston
Co-manager:	Deutsche Bank Securities
Coupon:	10¼%
Price:	Par
Yield:	10¼%
Spread:	626 basis points over 5% Treasury due August 2011
Call features:	Callable after Oct. 1, 2007 at 105.125, then 102.563, declining to par on Oct. 1, 2009 and thereafter
Equity clawback:	Until Oct. 1, 2006 at 110.250 for up to 35%
Settlement Date:	Sept. 30 (T+6)
Ratings:	Moody's: B3
	Standard & Poor's: B
Rule 144A Cusip:	43325MAA7
Price talk:	10½% area

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.